Fertilizer prices have gone up for both USA and Brazil, which could have a detrimental effect on soybean crop yields. But which country will suffer the most?
Soybean prices are generally the same for both countries. Shipping costs are slightly lower for Brazil.
However, the cost of production is significantly lower in Brazil due to low overhead costs like property taxes. Even for the direct costs, which include fertilizer and seeds, the costs between the two countries are comparable.
This is why Brazil will stay very competitive compared to USA. Brazilian soybean exports are rising.
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